Micro-grids are clusters of distributed energy resources (DERs) and loads that are served at distribution voltage levels. Micro-grids may be operable in a grid-connected mode or an autonomous mode (islanded or isolated). A micro-grid operates in an islanded mode when it is not connectable to a main utility grid. Electrical loads in remote locations, such as industrial facilities and residential communities, are often not connectable to main utility grids and often rely on local dispatchable energy resources, such as, fossil-fuel thermal generation resources including diesel gensets, micro gas turbines etc., for their energy supply. A micro-grid operates in an isolated mode when it is disconnected from the main utility grid but is nevertheless connectable to the main utility grid.
Micro-grids in autonomous modes tend to primarily rely on dispatchable energy resources. Because of high price of fossil fuels used in dispatchable energy resources, operation, control and maintenance of micro-grids tend to have high energy costs. Energy costs can be significantly reduced by incorporating intermittent energy resources, such as, for example, renewable energy resources, relying on wind, solar etc., to offset fossil fuel consumption.